Lifetime
Tax Planning

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Protect your wealth for future generations

Effective lifetime tax planning ensures your assets are passed on efficiently—minimising tax liabilities while safeguarding your family’s financial future. 

With inheritance tax (IHT) thresholds frozen until 2030 and upcoming reforms to business reliefs and pensions, proactive planning is now more critical than ever.

At Fairweather Law, we help you navigate these complexities with tailored strategies to preserve your wealth and legacy.

Understanding the Key Taxes in Lifetime Planning

Inheritance Tax (IHT) Planning

The 40% inheritance tax rate applies to estates exceeding the £325,000 nil-rate band (or £500,000 when including the residence nil-rate band for properties left to direct descendants). With property values continuing to rise and thresholds remaining static until 2030, an increasing number of families are finding themselves caught in the IHT net.

Important upcoming changes to note:

• The tax treatment of pensions will change significantly from April 2027, with undrawn pension funds becoming potentially liable to both inheritance tax and income tax, creating an effective tax rate as high as 67% in some cases.
• Business and agricultural relief rules will be reformed from April 2026, with the 100% relief currently available being capped at £1 million, and any excess amounts being taxed at 50%.

Capital Gains Tax (CGT) Considerations

The current CGT rates stand at:

• 18% (basic rate) or 24% (higher rate) for residential property
• 10% or 20% for other chargeable assets

Smart planning can help mitigate these liabilities through strategies such as maximising your annual exemption (currently £3,000), carefully timing the disposal of assets and considering transfers between spouses to utilise both partners’ allowances.

Income Tax and Pension Strategies

Pensions remain one of the most tax-efficient ways to preserve wealth, offering tax-free growth on investments, income tax relief on contributions and flexible access options in retirement.
ISAs also provide valuable tax-free savings opportunities that should form part of any comprehensive wealth preservation strategy.

What makes Fairweather Law special?

Value

Our legal fees are tailored to the local market, we regularly monitor our rates compared to larger organisations. Being a relatively small firm ensures that our rates remain competitive.

Free initial consultation

Free initial 30-minute phone consultation for both businesses and individual clients. Our legal team will discuss your needs and guide you in the right direction from the very start of our relationship.

Local to you

With offices throughout Suffolk, extending into Norfolk, and an expanding client base in the London area, we are confident in our ability to provide you with the highest standard legal advice, no matter your location.

No nonsense

We take pride in providing clear, straightforward advice without overwhelming you with unnecessary legal jargon. Our personalised approach and our ability to put you at ease, ensures a positive outcome.

Reputation

Our clients receive outstanding service, building continuing relationships that ensure they and our business partners return to us repeatedly for their legal needs.

Why lifetime tax planning should be your priority

• Maintain control

Without proper planning, your assets could be distributed according to tax rules rather than your personal wishes. We help ensure your legacy passes exactly as you intend.

• Significant savings

With careful structuring, you could reduce potential inheritance tax liabilities through:

    • Strategic gifting programs
    • Appropriate trust structures
    • Maximising available reliefs and exemptions

• Prevent family stress

Many families face the difficult situation of having to sell cherished family assets simply to pay unexpected tax bills. Proper planning ensures your beneficiaries aren’t forced into making hasty financial decisions during an already emotional time.

With significant tax reforms on the horizon and frozen thresholds dragging more estates into higher tax brackets, delay could prove costly for your family’s financial future. The team at Fairweather Law is ready to guide you through every stage of the lifetime tax planning process with clear, practical advice tailored to your unique circumstances.

Tax Planning
FAQs

How can I reduce my inheritance tax exposure without giving up control of my assets today?

There are several effective strategies:

• Establishing carefully drafted trust arrangements can remove assets from your estate while allowing you to retain certain benefits

• Loan arrangements can provide flexibility while still achieving inheritance tax savings

• Life insurance policies written in trust can provide liquidity to cover any eventual tax liability

Getting started can be easier than you think:

• Utilise your £3,000 annual gifting allowance

• Make use of the £250 small gifts exemption per person

• Review your pension arrangements well before the 2027 rule changes take effect

The landscape is changing but opportunities remain:

• Until April 2026, 100% business relief continues to apply as before

• After this date, only the first £1 million will qualify for full relief

• Early planning is essential to lock in the most beneficial treatment for your business assets

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